UK Bridging Loans - Home Loans

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UK Bridging Loans
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By Joseph Kocsis

The value of UK Bridging Loans for the property developer

Realising the value of UK bridging loans to the property developer can be the difference between success and failure. Many property developers often look for the quickest way to buy property, make improvements and sell off at a profit and often find that capital is in short supply but quick profits could be made.

UK Bridging loans are loans are usually taken out to solve a temporary cash shortfall that may arise when buying a property or business, or perhaps paying for a renovation. A typical example of when you may need one would be if you want to buy a second property before you have sold your first, or you may need one if you are buying property at auction.

As a property developer you may need a substantial amount of money for a short period of time, normally 2-6 months. Specialist lenders will consider investment property proposals where there is an opportunity to add value above and beyond the initial purchase price by a combination of one or more of the following:

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* Intensive management - improving the rental income stream by letting voids, reconfiguring accommodation and letting, progressing rent reviews, renegotiating leases, etc.

* By procurement of an alternative planning permission, effectively utilising the running rental stream to buy time/service interest whilst the planning process is followed.

* By breaking up the constituent parts of the investment into elements to be traded and retained.

A commercial UK bridging loan can give you a stronger negotiating position when buying commercial property, enabling you to buy a property without a contingency on the sale of your existing property or other assets. Often a bridging loan from

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